sinopec is buying the stake from chesapeake energy, which has been looking to sell off assets in order to raise money and pay down debt. the chinese company is spending just over $1 billion. but that price was lower than expectations, sending shares of chesapeake tumbling 6.8%. volume was heavy with the stock finishing at a three week low. this deal markets just the latest buyout of u.s. energy fields by a foreign company. the biggest deal of the day was in health care with irish drug maker elan the target of an offer from a pharmaceutical investment firm. royalty pharma said it approached elan last week about a take over. after talks, the offer was $6.6 billion, or $11 per share. the two companies reportedly have not had any talks since. shares of elan rallied 5.1%, closing above the offer price, indicating the market thinks a higher price could be coming. just this month elan announced a $3.3 billion deal to sell its share of multiple sclerosis drug tysabri to its partner. the drug accounts for most of elan's revenue. bio-pharmaceutical company affymax was a half billion dollar firm

we stayed away from that, but i think sinopec is very smart in how they analyze these deals.e two deals with indian companies and one with a chinese company in the last six months and they're very technically capable. they have their own price, cost of capital and on the technical side they're as sharp as anybody. i think that was probably a very accurate price. i think the market hyped it up ahead of time. right now there are several deals in the market like that, that are advertised as billion-dollar deals and probably will end up being $500 million deals. >> congratulations on the quarter. i think puts to rest a lot of the different questions and starts to bring out the value which we know is far more substantial than the price of the current stock. thank you to chip johnson, ceo of carizzo oil and gas. good to see you, sir. >> thank you, jim. >> we're looking for this disparity. we saw it with barry petroleum and a bunch of smaller stocks and with copono. carizzo is like that. he is bringing out a lot of value. in the interim i think you let the stock run. we'll go above

state owned chinese oil company and now it's looking to expand its partnership with other companies sinopec that they've agreed to look at increasing the amount of oil they send to sign a paper. japan clearly is a huge market for oil and gas they don't have any resources of their own and i think rosneft is looking at ways to cement their relationships with these big customers is it flows last year as a company how crucial all these partnerships are to tap into these gas reserves one hundred percent. critical for rosneft to do what they're doing with chinese and japanese companies you know. rosneft is already the biggest oil producer in russia it produces an awful lot of gas too it's the number one that has the backing of the russian government you could argue. and of course don't forget they are buying b.p. which was or is the third largest oil producer in russia and it's going to become by far the world's biggest oil producer once it's completed the acquisition of b.p. and a lot of people believe that by teaming up with the chinese and japanese for offshore exploration it's a way of kind o